Gold Daily Update – Wednesday 22-July-2009

Market Commentary
Gold opened at 946.00/947.00 and ticked lower to its intraday low of 944.25/945.25 following the USD rally and weaker oil prices. The metal rebounded from its lows as the USD reversed and energy prices rebounded, bringing the metal to its intraday high of 954.50/955.50. As the session unwound, moderate profit taking dragged it from its highs to finally settle at 953.00/954.00.

Technical Commentary
Gold is closing higher today at 951. The weeks high of 955 remains in tact, but we believe it will break, with initial test of 960, and then 990 the June high. We will hold our buy Gold strategy while the unit continues to close above key pivot 943.